[Recycled TPE/TPR Morning Brief] Short-Term Weakness Expected to Persist

Today's Summary

Spot Market Overview

Cost: East China SBS oil-extended rubber remained at a low level of RMB 12,300–13,400/ton, while extender oil and PP were stable; processing margins for recycled materials narrowed, and virgin materials crowded out substitution demand.

Mainstream tax-inclusive ex-factory price

Mixed low-filled TPR: RMB 7,200–7,800/ton, with a discount of RMB 80–150.

Medium purity natural color TPR: 7900-8400 RMB / ton, negotiable 50-100 RMB.

High-purity transparent TPE: 9,000–10,500 yuan/ton; scrap is scarce and the price spread is small.

High hardness modified TPE: 8500-9600 yuan/ton, with strong demand.

Supply and demand: Industry operating rates are at 68%-75%, with high inventories of general-purpose materials. Operating rates in footwear materials and toys have declined, with only limited rigid demand from electronic wiring harnesses; procurement is sporadic with long lead times.

Market Forecast and Operations

Short-term weakness is hard to change, and there is still room for profit margins in low-end materials; without raw materials and favorable orders, the market is unlikely to rebound in the near future.

Companies with elevated inventories are flexibly destocking, while both upstream and downstream players are avoiding large-scale stockpiling.